IGLF lends P3.3B to SMEs in 2014

MANILA, Philippines - The Industrial Guarantee and Loan Fund (IGLF) in 2014 released loans amounting to P3.27 billion, 36 percent higher than in 2013. 

Medium to long-term and short-term loans, at P2.58 billion, constituted 77 percent of net loans and interestingly, the largest growth rate of over 1,000 percent was manifested by medium to long-term loans.  These loans were targeted at SMEs in the countryside seeking to fund working capital and capital expenditure requirements.

IGLF had direct benefit on SMEs involved in transport services, trading, agribusiness, health care, food manufacturing and construction.

IGLF also took steps to further sharpen the focus of the program by increasing the asset size of enterprises eligible to P200 million to further increase market cover and to address financing needs of industries with high value linkages and those with high employment generation potential, consistent with the national government’s mandate of inclusive growth.

The IGLF likewise ramped up its support to the Credit Surety Fund (CSF) of the Bangko Sentral ng Pilipinas, assisting in 30 CSFs so the cooperative SME members can secure loans despite the inadequacy of their collateral position.

By the end of 2014, IGLF had program contributions of P72.13 million to these CSFs, with the following new entrants: Bataan Credit Surety Fund, Quezon City Credit Surety Fund, Marikina Credit Surety Fund, Agusan del Norte Credit Surety Fund, Butuan Credit Surety Fund, San Jose City Credit Surety Fund, Science City Credit Surety Fund, and Nueva Vizcaya Credit Surety Fund.

IGLF ended 2014 with P 104 million in net income.  It has also paid out almost all of its foreign obligations to the World Bank and with only ADB having a remaining balance of P392.7 million.  The initial government original investment in IGLF has grown from only P803 million to P6.3 billion today.

Throughout its 62 years of existence, IGLF has been the longest running lending facility of government, with sustainability assured by the Development Bank of the Philippines, which served as its Program Manager since 1990.